Early cashing in of a deferred Final Salary Pension

System

Hi

The CETV is not a cash lump sum,

"Is there a way I can start accessing all or part of this lump sum now or over a period of time, in a tax efficient way, by transferring the CETV to another scheme?, e.g. Private Pension or something else. "

so in the unlikely event you actually transferred it, you could take (presumably) 25% - £40,000 as a lump sum and then the balance would depend on your circumstances.

If you are not a UK taxpayer then probably the 120 K could be drawn down over a period of 10 years without a tax bill appearing on the horizon.

If you could transfer to a place where there is little to no payment of personal income tax, United Arab Emirates, Qatar or Oman are possibilities, then you may be able to achieve your tax efficient access in one fell swoop.

Bobby_Shants

dunstonh wrote: »

Why do you want to transfer the pension?

it is a transaction that is wrong in the vast majority of cases. So, why do you think it is right for you?

Of course...indeed.

Bobby_Shants

johndough wrote: »

Hi

If you could transfer to a place where there is little to no payment of personal income tax, United Arab Emirates, Qatar or Oman are possibilities, then you may be able to achieve your tax efficient access in one fell swoop.

By jingo you've nailed it. I am already looking into this possibility and I will keep you all posted on my progress.

molerat

Qatar, Oman and UAE do not appear on the QROPS list so I doubt that a) the pension provider will sanction a move there (as they will get a tax bill) and b) no IFA in their right mind will sign it off. If you do manage it HMRC will bill you for up to 55% of the payment.

dunstonh

Bobby_Shants wrote: »

By jingo you've nailed it. I am already looking into this possibility and I will keep you all posted on my progress.

So, you are looking to commit fraud?

No wonder you are being so obtuse.

xylophone

https://www.blevinsfranks.com/News/BlevinsFranks/Article/pension-transfer-rules-defined-benetit-schemes-qrops

https://www.gov.uk/transferring-your-pension/transferring-to-an-overseas-pension-scheme

sandsy

Transferring to an overseas scheme still requires compulsory financial advice. This actually makes the transfer more difficult to recommend as the adviser is required to compare the benefits of the final salary scheme with the alternative being considered. But when the alternative is overseas, the chances are that the adviser won't have enough information about it to carry out the comparison so may not be able to do the work at all. No advice = no transfer.

Malthusian

Bobby_Shants wrote: »

By jingo you've nailed it. I am already looking into this possibility and I will keep you all posted on my progress.

Please do as it will almost certainly provide a cautionary tale to those Googling "how do I cash in my pension" in the future.

dunstonh

sandsy wrote: »

Transferring to an overseas scheme still requires compulsory financial advice. This actually makes the transfer more difficult to recommend as the adviser is required to compare the benefits of the final salary scheme with the alternative being considered. But when the alternative is overseas, the chances are that the adviser won't have enough information about it to carry out the comparison so may not be able to do the work at all. No advice = no transfer.

The exception will be the non-regulated scammers who do most of these. Who take great chunks of the value of the pension in the process and are not around in the years to come when HMRC catch up with the individual and hit them with a 55% tax charge.

System

Bobby_Shants wrote: »

By jingo you've nailed it. I am already looking into this possibility and I will keep you all posted on my progress.

Just call me Claire DejaVu Voyant.


I had a call about something similar similar some years ago and mentioned Gibraltar which was very well received.